A deliberate change in the government's deficit
A) constitutes discretionary fiscal policy.
B) leads to automatic stabilization.
C) acts as a drag on the economy.
D) is implemented by the Fed.
A
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The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?
A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee
Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be
a. higher than the wages of workers with otherwise similar jobs. b. lower than the wages of workers with otherwise similar jobs. c. below market equilibrium. d. above market equilibrium.